A currency drain occurs when the
A) Fed increases the required reserve ratio.
B) Fed sells U.S. government securities.
C) non-bank public increases its holdings of currency outside the banking system.
D) banks reduce the number of loans they create with their excess reserves.
E) Fed buys U.S. government securities.
C
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A "sequential game" is
A) another term for a repeated game. B) another term for a cooperative game. C) the term for a game in which individuals receive their payoffs at different times. D) the term for a game in which individuals do not commit to strategy choices at the same time. E) the term for a game in which each outcome occurs, one after the other, as the game is repeated over time.
If real GDP declines for at least one-half year, the economy is experiencing a:
a. depression. b. decline. c. recession. d. growth recession. e. deflation.